Investor Relations September 2021 - Click to add text
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Click to add text Investor Relations September 2021
Forward Looking Statements
This presentation includes “forward-looking statements” within the meaning of the U.S. federal securities laws. Generally, the words “believe,” "aims," “expect,”
“intend,” “anticipate,” “project,” “will,” “outlook,” and similar expressions identify forward-looking statements, which generally are not historic in nature. Statements
that refer to projections of our future financial performance, our anticipated results, cost savings and trends in our businesses, and other characterizations of future
events or circumstances are forward-looking statements, and include, but are not limited to, the impacts of the Coronavirus pandemic on our operations, liquidity,
financial condition and financial results, overall volume trends, consumer preferences, pricing trends, industry forces, cost reduction strategies, including our
revitalization plan announced in 2019 and anticipated results, expectations for funding future capital expenditures and operations, debt service capabilities, timing
and amounts of debt and leverage levels, shipment levels and profitability, market share and the sufficiency of capital resources. Although the Company believes
that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be
correct. Important factors that could cause actual results to differ materially from the Company’s historical experience, and present projections and expectations
are disclosed in the Company’s filings with the Securities and Exchange Commission (“SEC”). These factors include, among others, the impact of the Coronavirus
pandemic, the impact of increased competition resulting from further consolidation of brewers, competitive pricing and product pressures; health of the beer
industry and our brands in our markets; economic conditions in our markets; additional impairment charges; our ability to maintain manufacturer/distribution
agreements; changes in our supply chain system; availability or increase in the cost of packaging materials; success of our joint ventures; risks relating to operations
in developing and emerging markets; our brand image, reputation, product quality and protection of intellectual property; cha nges in the social acceptability,
perceptions and the political views of beverage categories; changes in legal and regulatory requirements, including the regulation of distribution systems;
unfavorable outcomes of legal or regulatory matters; fluctuations in foreign currency exchange rates; increase in the cost of commodities used in the business; the
impact of climate change and the availability and quality of water; loss or closure of a major brewery or other key facility; our ability to implement our strategic
initiatives, including executing and realizing cost savings; pension plan and other post -retirement benefit costs; failure to comply with debt covenants or
deterioration in our credit rating; our ability to maintain good labor relations; a breach of our information systems; and ot her risks discussed in our filings with the
SEC, including our most recent Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. All forward-looking statements in this presentation are
expressly qualified by such cautionary statements and by reference to the underlying assumptions. You should not place undue reliance on forward-looking
statements, which speak only as of the date they are made. We do not undertake to update forward -looking statements, whether as a result of new information,
future events or otherwise.
Non-GAAP Information
Please see our most recent earnings release to find disclosure and applicable reconciliations of non-GAAP financial measures discussed in this presentation.
2
Who is Molson Coors Beverage Company?
5th ~100 42 15 OUR PURPOSE:
Uniting People to
LARGEST COUNTRIES BREWERIES +$$100M BRANDS* Celebrate All Life’s Moments
BEER
COMPANY
+84M +17,000
IN THE
OUR AMBITION:
WORLD First Choice for Our People,
VOLUME (hL)** EMPLOYEES Our Consumers and Our Customers
* Brand
* Brand families **
families ** Annual
Annual figure for 2020
figure for 2020 33
Rich and Evolving History
Revitalization Plan Announced & Underway
Molson Coors Molson Coors &
and SABMiller HEXO form Commences
Coors Canadian JV, Molson Coors distribution of La
form U.S. joint
pioneers Truss to develop announces strategic Colombe
Coors Light Miller venture
aluminum cannabis-infused partnerships including
introduced Genuine Molson 2008 La Colombe, an
Adolph cans acquires beverages for Launches Topo
1978 Draft is above premium RTD
Coors Carling Canadian Chico Hard
introduced Coors MillerCoors coffee and ZOA, a
opens the O’Keefe to market Seltzer in U.S. in
Golden Molson 1985 merges acquires healthy energy drink initial markets
Miller Lite become craft beer
Brewery in Canadian with
introduced Canada’s Saint Archer Acquires
Colorado introduced Molson
nationally, largest brewer 2015 California-based Announces JV Launches ZOA
1959 Molson 2005 Molson
John Molson 1873 creating the 1989 Clearly with Yuengling
opens beers are Coors
Coors light beer Kombucha;
brewery in introduced announces Launches Vizzy
Banquet segment in SAB acquires entry into
Montreal, to the U.K. Revitalization Acquires and Coors Seltzer
launched the U.S. Miller Brewing non-alcoholic
Canada 1983 Plan Atwater Brewery in Canada
1975 Company beverages
1786 1937 2019 2020 2021
2002 2018
2018
1855 1903 1988 1991 2012 2016 Expands 2019 2020 2021
Frederick J. Molson Miller Coors Light Acquires Acquires U.S. cider Equity Corporate name Launches Three
Miller takes Export acquires available in StarBev, craft beers portfolio investment in change to Molson Coors Fold and Wai
over the Plank launched Jacob all 50 states changes Terrapin Beer Co, with LA Libations Beverage Company Moment hard
Road Brewery Leinenkugel for the first name to Hop acquisition to develop seltzers in Europe
(Milwaukee Brewing time Molson Valley Brewing of Asphall non-alcoholic
Expands hard
Brewery still Miller Company Coors Company, and Cyder beverages
seltzer business Launches Yuengling
there today) High Life Central Revolver Brewing Limited
1970 1981 with U.S. launch brand through our JV
introduced 1995 Europe
Phillip Coors Light of Vizzy and in initial state of Texas
Coors Molson Coors announces
Morris buys “Silver
launches acquires partnership with
Miller Bullet”
Blue Moon remaining ownership Coca-Cola and
Brewing advertising
Brewing stake of Topo Chico
Company begins
Co. the MillerCoors
JV from SABMiller
4
Global Footprint
*
*
*
* Licensed brands in the US
5
Diversified Portfolio Serving All Segments
ABOVE PREMIUM PREMIUM ECONOMY
6
Strategic Partnerships with Above Premium Brands
Exclusiv e agreement A 50/50 joint v enture with Exclusiv e distribution Joint v enture with HEXO Distribution agreement in Collaboration w ith Spain's,
w ith The Coca-Cola oldest brew ery in the agreement for new health- to manufacture and the U.S. w ith leading La Sagra Brewery to
Company to U.S., w hich w ill exclusively focused energy drink co- distribute cannabis- abov e premium ready to create a premium beer
manufacture and distribute Yuengling owned by Dwayne Johnson infused bev erages – drink coffee company launched in the U.K.
distribute Topo Chico brands in 25 states THC-based in Canada on premise
Hard Seltzer in the U.S. and CBD-based in
Colorado
7
Approach to Long-Term Value Creation
Our Revitalization Plan – On the Path to Deliver Sustainable
Top and Bottom-Line Growth
STRATEGIC ORGANIZATIONAL
Build on the Aggressively Expand in Invest Support our
strength of grow Above Beyond Beer in our people and
our iconic Premium capabilities communities
brands
9
Streamlined Operations Drive Improved Efficiencies
PAST PRESENT
NORTH
U.S. CANADA EUROPE MCI AMERICA EUROPE
(U.S., Canada, (+APAC)
Emerging
Growt h)
CORPORATE
CENTER
Com plex and Sim plified, Nim ble and
Layered More Accountable
10Building on the Strength of Our Iconic Core Brands
in North America
North America
In the U.S., Coors Light and Miller Lite delivered combined segment share since Molson Canadian a top 5
the third quarter of 2014 brand in Canada
11Building Scale in Our Iconic Core and Above
Premium Brands Across Europe
Europe
The UK’s number one The world’s most Croatia’s number one Czech-provenanced International Premium
beer – made local. refreshing beer* beer & sponsor of the premium beer in over beer…It’s Miller Time!*
national team 40 countries**
* Prices at Above Premium levels in Europe.
12
** Prices at Above Premium outside its home country of the Czech Republic.Growing Above
Premium Presence
through Our Craft
Beer Portfolio
13Increasing Hard Seltzer Share on a Global Basis
through Our Differentiated Approach
U.S. Canada Europe
Driving Toward a 10% Share of the Quickly Taking Share Early Mover in the
Hard Seltzer Category by End of 2021 in Leading Retailers Hard Seltzer Category
14Building Our Emerging Growth Division into a
One Billion Dollar Revenue Business by 2023
15• Investments to modernize brewery footprint / supply
chain efficiency, including G150 project
• Expanding capacity for hard seltzer in the U.K. and
Canada following U.S. expansion in 2020
Investing in Our • Delivering on World Class Supply Chain objectives
Capabilities and • Developed in-house analytics team to enhance
processes and systems
Powering Growth • Supports faster time from innovation to market and
focus on marketing spend return
• Improved e-commerce capabilities
• Enhanced data management
16Expanding Business for Our Customers
49% PDP STRATEGY DRIVES
#1
BREWER IN ON PREMISE
ACV WITH
CATEGORY +2.5 PT CATEGORY
CAPTAINCY ADVANTAGE
SURVEY
17Month of
Inclusion
Employee
Program
Supporting Brewing Driving Refreshed
Scholarships ESG Strategy
Our People and for Women &
People of
Positive focused on
People &
Color Change Planet
Our Communities
$3 million
Investment in
Social
Justice
Initiative
18Commitment to People & Planet
Our Imprint 2025: Strategic Pillars
of our Refreshed Strategy
We are committed to acting in a responsible
manner, weaving ESG into every decision we make.
We have identified the areas where we believe we
can have the biggest impact, and which inform the
two pillars of our strategy: People & Planet
20Our Imprint 2025:
Defining our focus
Under our People and Planet pillars sit four priority areas that
align with our brands and where we can demonstrate
leadership: DEI, Water, Climate and Packaging. Diversity, Water Climate Packaging
Equity &
Our Foundational Commitments form the building blocks of Inclusion
our business and our ESG strategy. They also underpin Our
Imprint goals across the four defined priority areas. Foundational Commitments
Alcohol Responsibility: responsibility programs,
alcohol policy, responsible marketing, low-and no-
alcohol, and labeling
Social: health and safety, human rights,
sustainable and ethical supply chain, and
inv estment in the communities in which we
operate.
Governance: board composition & div ersity, anti-
bribery and corruption, tax policy, ethics & compliance,
political contribution transparency and enterprise risk
management.
21Four Strategic Priority Area Goals
Diversity, Equity & Inclusion Water
Make diversity, equity, and inclusion part of everything we do - Protecting precious water resources by doing more with less
from how we work together to how we grow our company
We intend to:
We intend to:
• Make our products with 22% less water
• Increase US People of Color Representation by 25% by 2023
• Improve water availability in our brewery water-stressed
• Increase our supplier div ersity program spend by $1B ov er the watersheds and restore 3.5 billion gallons of water
next three years in North America
• Grow our barley with 10% less water
• Improve representation of women across North America by
2023 to reflect market av ailability
Packaging Climate
Reducing packaging and innovating for a more circular economy Leaving a smaller carbon footprint at every step of the value chain
We intend to: We intend to:
• Ensure our packaging is 100% reusable, recyclable and • Reduce carbon emissions by 50% in our operations
compostable and made from at least 30% recycled content
• Decrease carbon emissions by 20% across our v alue chain
• Achiev e zero waste to landfill at 100% of our operations
Note: Please see Our Imprint 2025 on our corporate website for full details on our ESG
strategy and progress against our goals. Unless otherwise noted, the deadline for the 22
goals on this page is 2025.FINANCIALS
Strong History of Cost Savings and FCF Generation
Accomplishments in Cost Savings Strong Underlying Free Cash Flow Generation
Cost Savings ($’M)
Acquires remaining
ownership stake of
MillerCoors JV
from SABMiller
330
255 240 270
230
FCF ($’M)
2017 2018 2019 2020 2021-2022 1,449
Estimate 1,422 1,370 1,266
957
• 2017 – 2019 Cost Sav ings Plan of $700 million 704
864
✓ Deliv ered $725 million, exceeding expectations
• 2020 – 2022 Cost Sav ings Plan of $600 million to be 2014 2015 2016 2017 2018 2019 2020
deliv ered ratably ov er the term
✓ Deliv ered $270 million in 2020
Note: Cost savings figures are approximate. Note: Underlying free cash flow is a non-GAAP measure of cash generated from
core operations. See reconciliation to nearest U.S. GAAP measures in the
respective earnings releases.
24Disciplined Capital Allocation
Effectively Paying Down Debt
• Prudent investment in the business to Acquires
remaining ownership
drive long-term value creation utilizing stake of MillerCoors JV
Profit after Capital Charge framework from SABMiller
• Continue to deleverage the balance
Net Debt to Underlying EBITDA
sheet; Maintain, and in time upgrade, StarBev
Acquisition
Investment Grade rating
• Return cash to shareholders; Long history 4.78
4.37
3.84
of quarterly cash dividends; Following 3.60 3.50
~3.25
2.89 < 3.0
May 2020 suspension of the dividend 2.29
1.73 1.88
due to the Coronavirus pandemic,
payment of a quarterly dividend
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
resumed in September 2021 Estimate Estimate
Note: Represents Net Debt/ Underlying EBITDA utilizing publicly reported financial statements. Ratios
under the Company’s debt covenants or those used by rating agencies may be calculated differently.
252021 Guidance
Full Year Outlook*
• Mid single-digit net sales revenue growth
compared to the prior year, on a constant
currency basis
• Flat underlying EBITDA compared to the prior year,
on a constant currency basis
• Top-line growth to be offset by COGS inflationary
headwinds and increased marketing investment
spend, most notably in Q3 2021
• Underlying depreciation & amortization of
approximately $800 million
• Consolidated net interest expense of
approximately $270 million
• Underlying effective tax rate in the range of
20%-23%
* Guidance provided as of July 29, 2021 and not being
26
reaffirmed or updated hereby.Proven Flexibility and
Agility in Unprecedented
and Challenging Times
✓ Continued execution against Revitalization Plan
✓ Maintained strong cash position while reducing debt
✓ Strict financial discipline resulting in significant balance
sheet improvements
✓ Continued support of core brands and new innovations
✓ Adapted to new ways to go-to-market with nimble
marketing effectively connecting with consumers
✓ Agile supply management to best ensure meeting
customer demand
27“ Molson Coors' future is bright and the revitalization
plan is succeeding. We're deleveraging our business,
we've reinstated a dividend, we're thinking more
consciously about how we best support our people
and the communities in which we operate, we're
investing behind our brands, we're reshaping our
portfolio, and we're expanding into new spaces.
"Nearly two years into our revitalization plan, our results
are improving. We're going to put our foot even more
firmly on the gas pedal – as we drive toward our
sustainable top and bottom-line growth ambition
for this business."
Chief Executive Officer
Gavin Hattersley
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